Procurement process of the goods or work by the public companies (Ministries, Departments, NEA, NTC, NAC , CAAN etc) is governed by the procurement act 2007A.D/ 2063 B.S. The process by which procurement should be done based on the following factors:
1) value of procurement,
2) source of fund for the procurement,
3) degree of emergency of requirements of goods/ work
4) requirement of community involvement and employment empowerment
Based on the above factors, the procurement can be done by public entity in the following way
1) National Competitive bidding:
4) Direct procurement
1) value of procurement,
2) source of fund for the procurement,
3) degree of emergency of requirements of goods/ work
4) requirement of community involvement and employment empowerment
Based on the above factors, the procurement can be done by public entity in the following way
1) National Competitive bidding:
- Value of the procurement: above 10 lacs for the goods and above 20 lacs for the work.
- The tender notice should be published in national newspaper with period of at least 30 days.
- The tender documents must be available from two or more than two public entities.
2) International Competitive bidding
- Value of procurement: Same as NCB
- The tender notice should be published in English language with at least period of 45 days
ICB is done in the following cases:
- If the goods/work cannot be available at competitive price inside the Nepal
- If the agreement with donor agency has been done in such a way that the goods/work must be buyed from the donor's conuntry
- If none of the responsive bid has been obtained previously while doing NCB in Nepal
- If the work/goods required is of complex nature
- Value of the procurement:below 10 lacs for the goods and below 20 lacs for the work.
- The tender notice should be published in national/local level newspaper with period of at least 15 days.
- The lowest sealed quotation fulfilling the technical requirement will be selected .
4) Direct procurement
- Procurement value: procured directly without any competition between the vendor
- Allowed upto 5 lacs only
- If there is only a single competent vendor for providing the particular goods/works
- If there is an emergency requirement
- if any single vendor has exclusive rights to provide goods/works and ther e is no other options available
5) Work through user committee
The main objective of this type of procurement is to achieve the involvement of local community and provide more and more employment opportunity to them. The maximum value of procurement through this type is sixty lacs only
6) Work may be done by Force Account
In this method the public company hire few worker on wage basis and do the construction activity through them. The maximum procurement value allowed is 1 Lacs